Zappos may have discovered that employees need managers after all, according to writers, J. Brandon Rigoni and Bailey Nelson at the Gallup Business Journal, (February, 2016). The online shoe and clothing retailer’s holacracy management system doesn’t appear to be working. According to a recent New York Times article, (January, 2016), Zappos continues to “hemorrhage employees” as a result of the companywide implementation of holacracy.

Engaging employees requires more than directing them in what to do; they also need to receive credit for their accomplishments. Such recognition helps to improve the employee experience according to Ventana Research: Five Reasons to Use Social Recognition in Business, 2014. The research states that recognition of employees has many more benefits than simply motivation. The recognition contributed to creating a positive employee culture where they feel: